RSI Divergence Trader

RSI Divergence Trader is an expert advisor for MetaTrader 4 that looks for divergence between price and the Relative Strength Index and then decides, through a set of filters, whether a trade is worth opening. It is built for traders who want control over which divergences are accepted rather than a single fixed rule.

How it works

The EA separates two ideas. A signal is an RSI peak or trough that may point to a divergence. An entry is the actual order, placed only if the conditions around that signal are met. This split lets you tighten the signal rules and the entry rules independently.

Signal filters

• RSI value filter, so only peaks in a chosen zone count.
• Price action filter, which asks for a minimum move in price before a signal is valid, since divergences often appear late in a trend.
• ADX filter, which can be used alongside RSI to judge trend strength.
• Counter-signal cancellation, so a buy signal and a sell signal cannot both be active.

Entry filters

• Minimum and maximum distance from the signal, measured in time and in price.
• A position-in-range check, so buys are taken in the lower part of recent bars and sells in the upper part.
• ADX +DI and -DI values, or ADX divergence.
• An optional multi-timeframe divergence requirement.

Order management

Trades can close at a fixed take profit or on a divergence in the opposite direction, which acts as a dynamic take profit. Stop loss can be fixed or trailing. Lot size can be calculated automatically. An optional grid adds positions, and you can raise or lower both the lot size and the distance between grid steps.

Drawdown lock

If drawdown reaches a percentage you set, the EA can lock the open trades. Later profit is then used to close part of the locked loss. As an alternative you can rely on a fixed or trailing stop loss instead.

Markets and timeframes

The EA is aimed at forex pairs and is designed around the M5 chart. Other pairs and timeframes may behave differently, so run your own tests and check that your broker's spread and execution suit short-term trading.

Settings

Exact parameter names and defaults depend on the build you receive, so read the input list in the EA properties. The table shows the groups to review.

Risk

Choose a lot size and drawdown limit that fit your balance, and confirm any minimum deposit or leverage requirements with your broker.

Installation

1. Open MT4 and select File, then Open Data Folder.
2. Go to MQL4, then Experts, and copy the EA file into that folder.
3. Restart MT4 or right-click Navigator and choose Refresh.
4. Open the chart and timeframe you want, then drag the EA onto it.
5. On the Common tab allow live trading, and switch on Algo Trading in the toolbar.
6. Review the inputs, and run it in the Strategy Tester or on a demo account before using real funds.